Could the Next Breakout Be Imminent?

Key Insights:

• AVAX retraces to $12.96 golden zone, a key technical level attracting strong trader interest.
• Bitwise plans U.S. AVAX ETF with staking, offering yields and lower fees than competitors.
• Traders eye $15.71 breakout as price structure forms at critical Fibonacci support level.

Avalanche (AVAX) has retraced sharply after a strong rally earlier this month, returning close to its previous support zone. The live Avalanche price is currently $12.96, down 7.89% in the last 24 hours. Trading volume over the same period reached $446.9 million, showing active participation despite the price decline.

AVAX Tests the 0.618 Fibonacci Level After Recent Pullback

AVAX surged earlier this month following a clean technical setup that saw the price rally strongly. Short-term traders took profits at the recent peak. Since then, the price has nearly completed a full round trip, retracing to the 0.618 Fibonacci level.

This Fibonacci retracement zone is considered an important area in technical analysis. Traders use it to identify possible bounce points or reversals. The $12.96 level has now become a focus for buyers, as many watch for signs of support that could help the price rise to $15.71 level.

Based on CryptoPulse that this area “often acts like a springboard,” referring to past market behavior near this level. The firm advised traders to watch how the structure builds from that level and plan next move before any potential breakout happens.

Bitwise Files for AVAX ETF With Staking Yields

Bitwise Asset Management has filed to update its Avalanche ETF under the ticker BAVA. The firm aims to make it the first crypto ETF in the U.S. to offer staking rewards to investors.

According to the filing, the fund plans to stake up to 70% of its AVAX holdings. Investors would receive staking rewards after a 12% operational fee is deducted. This update may appeal to income-focused investors looking for yield-based crypto products.

The ETF will charge an annual fee of 0.34%, which is lower than VanEck’s 0.40% and Grayscale’s 0.50%. Bitwise stated that BAVA “would be the lowest-cost fund in the space” compared to competing products that do not offer staking.

CryptoPulse noted that if the price shows signs of strength and begins to form a base, it could signal a new buying opportunity.

AVAX Price Movement Could Set Up New Trading Opportunities

The current price movement around the golden Fib zone is drawing interest from both retail and institutional traders. Many are waiting to see if AVAX holds this level and begins to form a bullish structure.

Traders are being advised to map their plans early and watch the setup carefully. The recent combination of price movement, ETF news, and technical support levels creates a situation that could lead to another breakout. With Bitwise’s ETF update and technical support at play, AVAX will likely remain in focus in the future.